Victor EzejaUnited States President Donald Trump has announced a 90-day pause of the proposed 50 per cent tariffs on the European Union (EU).
In a statement on Sunday, May 25, Trump said implementation of the 50 per cent tariffs will now start on July 9.
Join our WhatsApp ChannelThis decision came after a telephone call between Trump and the European leader, Ursula von der Leyen.
Trump had on Friday threatened to invoke the steep tariffs as soon as June 1, saying talks with the EU over his previous levies were “going nowhere.”
“We had a very nice call and I agreed to move it,” Mr Trump told newsmen on Sunday at Morristown Airport in New Jersey on his way back to Washington.
In a post on X earlier on Saturday, Von der Leyen had posted on X that she held a “good call” with Trump, “to reach a good deal, we would need the time until Jul 9.”
“Europe is ready to advance talks swiftly and decisively,” said the president of the European Commission, which conducts trade policy for the 27-nation bloc.
The EU was scheduled for a 20% tariff under the reciprocal rates set in April, but a temporary suspension reduced the rate to 10% until July 9th.
However, Mr Trump on Friday threatened to put a higher tariff of 50 per cent on the EU beginning June 1st, citing the bloc’s slow-walking discussions and unfair targeting of US companies with litigation and regulations.
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Trump’s threat had been interpreted as an attempt to pressure the EU into making concessions in continuing discussions.
Speaking in Brussels on Monday, Minister of State for International Development Neale Richmond said efforts to head off devastating tariffs on trade imposed by the United States were about “damage limitation.”
Minister for Agriculture, Martin Heydon, said Mr Trump seemed disappointed that the EU had not “just rolled over” and caved in to US requests, such as lowering strict food safety rules and controls on digital businesses.
READ ALSO: U.S. Tech Giants Walk A Tightrope Through Trump’s Tariffs
“We are one of the most important trading partners for the US, so we shouldn’t just agree to whatever the demand is from the White House,” Heydon said.
According to Bloomberg estimations, Mr. Trump’s 50% tariff threat would damage $321 billion (€281 billion) in US-EU goods trade, decreasing US GDP by nearly 0.6% and raising prices by more than 0.3%.
The US president has stated that he intends to use tariffs to encourage firms to build plants in the United States rather than elsewhere to produce goods.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
